Madras High Court
Tvl.Sma Tex vs The Proper Officer/Assistant ... on 1 July, 2024
Author: Senthilkumar Ramamoorthy
Bench: Senthilkumar Ramamoorthy
W.P.No.16048 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 01.07.2024
CORAM
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY
W.P.No.16048 of 2024
and W.M.P.Nos.17551 & 17553 of 2024
Tvl.SMA TEX,
Rep. by its Proprietor
S.M.Annamalai, No.4/631A,
Erumapalayam, Kalrampatty,
Salem, Tamil Nadu-636 015. ... Petitioner
-vs-
1. The Proper Officer/Assistant Commissioner (ST)(FAC),
Annathanapatty Assessment Circle,
Integrated Commercial Taxes Building,
4th floor, Pitchards Road,
Hasthampatty, Salem-7.
2. The Inspector of Sales Tax Recovery,
Annathanapatty Circle, Salem-7. ... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India, to issue a Writ of Certiorari calling for the records pertaining to the
impugned order vide reference No. 33AETPA7760A1ZQ/2018-19 dated
03.03.2023 demanding Rs.38,34,860/- towards tax, interest and penalty and
consequent communication towards attachment of the petitioner's property
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https://www.mhc.tn.gov.in/judis
W.P.No.16048 of 2024
which is issued by the 1st respondent to 2nd respondent dated 16.05.2024
and quash the same.
For Petitioner : Mr.C.Prabakaran
For Respondents : Mr. T.N.C.Kaushik, AGP (T)
ORDER
In this writ petition, an order dated 03.03.2023 and the consequential
distraint order dated 16.05.2024 are assailed. The petitioner asserts that a
notice for cancellation of the GST registration was received on 21.01.2019
and that such registration was cancelled on 27.02.2019. On account of
cancellation of the GST registration, the petitioner asserts that he was
unaware of proceedings culminating in the impugned assessment order
under Section 62 until distraint proceedings were initiated.
2. Learned counsel for the petitioner submits that the petitioner had
suffered business losses and that the registration was cancelled under those
circumstances. In those circumstances, he submits that the petitioner was
unable to participate in proceedings culminating in the impugned order. He
also submits that the petitioner agrees to remit 10% of the disputed tax
https://www.mhc.tn.gov.in/judis
demand under the impugned assessment order as a condition for remand.
3. Mr.T.N.C.Kaushik, learned Additional Government Pleader,
accepts notice for the respondents. He submits that principles of natural
justice were complied with by issuing notice dated 05.01.2023 in Form
GSTR 3A. Since the petitioner failed to file returns upon receipt thereof, he
submits that the assessing officer was constrained to make the assessment on
best judgment basis under Section 62 of applicable GST enactments.
4. On examining the impugned assessment order, it is evident that the
assessment was made on best judgment basis because the petitioner failed to
respond to the notice in Form GSTR 3A. In the affidavit in support of this
writ petition, he asserts that his registration was cancelled and that he was
unable to carry on business due to financial stringency. In the above facts
and circumstances, the interest of justice warrants that the petitioner be
provided an opportunity to contest the tax demand on merits, albeit by
putting the petitioner on terms.
5. Therefore, the impugned order dated 03.03.2023 is set aside on
https://www.mhc.tn.gov.in/judis
condition that the petitioner remits 10% of the disputed tax demand as
agreed to within a period of two weeks from the date of receipt of a copy of
this order. The petitioner is permitted to submit a reply to the show cause
notice within the aforesaid period. Upon receipt of the petitioner's reply and
upon being satisfied that 10% of the disputed tax demand was received, the
1st respondent is directed to provide a reasonable opportunity to the
petitioner, including a personal hearing, and thereafter issue a fresh order
within a period of three months from the date of receipt of the petitioner's
reply. In view of the assessment order being set aside, the distraint order is
also set aside.
6. The writ petition is disposed of on the above terms without any
order as to costs. Consequently, connected miscellaneous petitions are
closed.
01.07.2024
Index : Yes / No (1/3)
Internet : Yes / No
Neutral Citation: Yes / No
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To
https://www.mhc.tn.gov.in/judis
1. The Proper Officer/Assistant Commissioner (ST)(FAC),
Annathanapatty Assessment Circle,
Integrated Commercial Taxes Building,
4th floor, Pitchards Road,
Hasthampatty, Salem-7.
2. The Inspector of Sales Tax Recovery,
Annathanapatty Circle,
Salem-7.
https://www.mhc.tn.gov.in/judis
SENTHILKUMAR RAMAMOORTHY,J
kj
and W.M.P.Nos.17551 & 17553 of 2024
01.07.2024
(1/3)
https://www.mhc.tn.gov.in/judis
